Monday, March 14, 2011

Japanese Market Crash - U.S. Equity Futures Down and Treasuries Up

Zero Hedge is saying that there was a flash crash on the Nikkei. Meanwhile U.S. equity index futures are down and Treasuries are rallying after hours.

I think it is important to note that silver is down after hours - again, silver is trading as a risky asset that is sold during any flight to safety.

If anyone writes-off nuclear energy (the way people did with offshore oil last summer after the BP spill) because of this accident, it will be a mistake. Because people are innumerate, it is hard for them to understand that nuclear energy is very safe, but has very dramatic accidents when they happen. Coal power releases much more radioactive isotopes into the environment than does nuclear power.

I'm sorry that this happened to the Japanese. This may be what pushes the U.S. equity markets over the edge, but our bearish thesis would have been realized inevitably anyway.


eahilf said...

I think it's important to note it took a huge natural catastrophe, followed by what appears to be a nuclear one, to bring the markets down.

...but our bearish thesis would have been realized inevitably anyway.

Pretty opportunistic in a shitty sort of way, I would say.

Taylor Conant said...


The Bach was an elegant, if not dramatic, touch!

Guess it just goes to show you can really do it all: short silver, hoard nickels and embed classical music YouTube clips!

CP said...

With Credit Bubble Stocks you can have it all.

C. Fischer said...

Eric, many steep declines come as a result of something unfortunate happening. Having the patience to not BUYBUYBUY into an overheated market and waiting for a better opportunity is hardly "opportunistic in a shitty way." It's discipline.

CP, I agree. I'm keeping an eye on ETR

CP said...